Breaking Down Trump's New Tax Proposal for Tips

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TAKING THE NEXT STEP:

With presidential campaigns heating up on both sides of the aisle, politicians are making a lot of proposals. Former President Trump recently proposed that he wants to eliminate taxes on tips. This new tax change would apply to many different workers including caddies, bartenders, waitresses, and more.

In this video, tax expert Karlton Dennis explains how this new tax elimination for tips might work if it becomes law. He also explains other key details about Trump’s tax cuts for tipped wages including how Trump came up with the idea, and gives his opinion on what the implications are for the economy at large and for federal tax revenue.

It is important to note that this tax change has not become law yet, so it is not a guarantee that it will happen. But, if it does, then tipped workers will need to understand the tax implications so that they can take full advantage of this change. So, if you are a tipped worker, then this is a good video for you to watch.

CHAPTERS:
0:00 Intro
0:37 Trump Announces Plan to Abolish Taxes on Tips
1:50 How Would Trump's Tax Cuts on Tips Work?
3:08 The Potential Impact of Trump's Tax Proposal
4:17 Could the Government Spend Less Money?
7:47 How Could No Taxes on Tips Affect Other Jobs?
8:30 Outro

*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.

#donaldtrump #taxproposal #notaxontips

[independent]

It is so refreshing to listen to someone who isn't a bot for either side. I really like your presentation and content.

[Caroline-rtqx]

Trump also proposed No Tax on Overtime pay!

[Jc-smvi]

I am a business owner and I will definitely support the option to give my employees tips out of their salary. Anything that gives the government less to spend in wars and bullshit researches.

[thelmacecelia]

He is also saying no tax on overtime. I work in a hospital and that would help a lot because I have to do a lot of overtime.

[ShaneStilwell]

I love that you bring up the government waste and budget. Elon Musk has said he would help Trump with an efficiency program, this could literally cut the federal budget in half!!! Remember also, tips did not used to be taxed.

[ReasonsWhy]

I'm not a Service worker, but I know a few. And I think that is a novel idea. People need help in any way they can get it. But doing away with FED. Tax would be a game changer! 💲💲💲

[denisechristian]

Half my earnings are tips! I’d love to see this policy come to fruition!

[irinabenskaya]

We need less government and less much less spending/ wasting our taxpayer money!

[calpulse]

The IRS needs to go away along with property taxes

[Sugin]

Dems it's a horrible idea he's stupid.

Kamala: I think I'll do that to.

Dems: omg queen we love you your a genius. 😂😂😂

[BakoSooner]

First, the tip money was already taxed from paycheck. Second, US have $66B to other countries in 2023 as “foreign aid”.

US doesn’t have income problem. We have spending problem. But nobody is willing to do anything about the expense side.

[Eagle..]

He definitely wants to strengthen America without a doubt

[expertonnothing]

I’m not a server. I do agree tips shouldn’t be taxed. The person who tips already paid taxes on that money. The restaurant is able to write off the persons wages as a needed business expense. Then the worker gets taxed on that. Tipping people doesn’t give me a tax deduction. Therefore it’s double taxation

[iamdrealdeal]

They complaining $250billion? you gave that to Ukraine already. So, gifting your citizen for working hard is difficult?

[MrPookiexLoi]

I am wishing that the next President 2028 will be Vivek Ramaswamy he said he would either get rid of the IRS completely or cut majority of the staff to only a small group to run the IRS and then to implement a Tax code at 12% across the board for all American employees/employers and American businesses / corporations. It would be a dream come true to just pay one Tax every year and that is it. What a country America would be if we did that.

[rhondautt]

I am definitely impressed with your explanations! So calm, so simple

[captalks]

I love it, if tipped workers have more disposable income, they’d spend on things they maybe normally wouldn’t have spent money on like a new car, house, renovations, consumer goods. Grow the economy organically… more spending more taxes more demand etc

Sure I’m an engineer working in auto and I don’t get the same tax treatment as tipped workers but if more people can afford new cars, hell yeah, this would benefit the auto industry and thus, myself.

[bloomingtales]

Reduce government spending by getting rid of some of these alphabet agencies like the FDA who's not helping us anyway.

[rdavis]

Trump 2024 MAGA!!! Say no to marxism and communism.

[TenorDad]

Karlton, you are one smart cookie. I agree with you. In order to "balance the scales" the next presidential administration will need to start firing a woefully over bloated federal government AND lower/eliminate income taxes. On another note, the President of El Salvador says that U.S. Treasury Bonds (the FED buys the majority of them with freshly minted currency), not American taxpayers, fund the government. Wanna tackle that in your next video?